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Modern management theory integrates classical models with social and behavioral sciences, emphasizing the importance of understanding the inter-relationships between management and workers. It includes systems theory, which views organizations as open systems influenced by their environment, and the contingency approach, which advocates for situational decision-making. An integrative approach within systems theory promotes a holistic perspective, encouraging collaboration and sustainability to address complex organizational challenges.

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6 views

New DOC Document(1)

Modern management theory integrates classical models with social and behavioral sciences, emphasizing the importance of understanding the inter-relationships between management and workers. It includes systems theory, which views organizations as open systems influenced by their environment, and the contingency approach, which advocates for situational decision-making. An integrative approach within systems theory promotes a holistic perspective, encouraging collaboration and sustainability to address complex organizational challenges.

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Teferi Costa
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Modern approaches to management

Introduction:
Modern management theory refers to emphasizing the use of precise mathematical
techniques in the system with analyzing and understanding the inter-relationship of
management and workers in all aspect. Management is occurred from several corners
of the world and its accomplishment engulfing since emergence of the development.
Modern Management has grown-up with the collective of social, economies and
scientific effort. Modern Management view is that the people are not functioning for
money others reason need to well-thought out. To meet the satisfaction and the
well being with living modus, no financial factor work as one of the elicit aspect.
Contemporary An employee does not work for money only. The belief of this method
that an organization can turn into one big happy family where it is always possible to
find solutions which satisfy everybody has also been questioned.

 Modern approaches to management


The Modern Theory is the integration of valuable concepts of the classical models
with the social and behavioral sciences. This theory posits that an organization is a
system that changes with the change in its environment, both internal and external.
There are several features of the modern theory that make it distinct from other sets of
organizational principles, these are: systems and contingency theories.

 System theory

This is a newly developed approach which came existence in 1960. This approach
was developed by Chester I. Bernard, Herbert A. Simon and their colleagues. The
system approach means a group of small inter-related units. A group of different
units which means a complete unit is called a system, while the small units are
themselves independent, but somehow or the other is connected with the sub-
systems of the related system. All the sub-systems influence one another. For
example- a scooter is a system which has many sub-systems in the form of
engine, shaft, gear, wheels body. All these sub-systems are inter-related with one
another and if one of them fails the whole system stops working. Therefore, the
success of the system depends on the cooperation and efficiency of the sub-
systems. It can, therefore, be said that a system means different inter-related parts
which work n cohesion simultaneously to achieve a particular purpose.

According to the system approach, the whole organization is a system and its
various departments are its sub-systems. All the sub-systems work in unison.
Then and only then the objective of the organization can be achieved. Therefore,
when manager taken some decision regarding a particular sub-system, he should
also take into consideration the defect of his decision on the other sub-syste .
Contemporary systems theory finds it helpful to analyze the effectiveness of
organizations according to the degree to which they are open or closed. There are
two types of systems: open and closed
 Open System:

An open system means a system which remains constantly in touch with its
environment and is influenced by it. Modern management experts consider an
organization as an open system. Environment is a combination of many factors.

The chief factors of the environment of an organization happen to be raw


material, power, finance, machine, man-power, technique, market, new products,
government policies, etc. All these factors of environment enter an organization
as Input. Within the organization, they are converted into products through the
process of various activities.:

Then they walk out of the organization in the form of output and once again
mingle with the environment. At this time, they happen to be in the form of
goods, services and satisfaction. All the factors of input and output influence the
organization. That is why an organisation is called an open system.

 Closed-system

closed-system models, some of which may seem unrealistic in the present


circumstances, were the products of the problems and subsequent changes that
emerged during the Industrial Revolution. At the beginning of industrialization in the
mid1800s, the early factories were highly inefficient. There were no documented
correct ways of doing work. Organizations were constantly thinking of ways to design
and manage work to increase productivity, with the focus primarily being internal.
The theories and models that emerged as a result are often termed machine models,
also popularly known as classical models or traditional models. These models sought
to make organizations run like efficient, well-oiled machines by correcting the
internal functioning of the organizations.

Closed-models consider the external environment (technological advancements, the


cultural and demographic characteristics of the community, legal decisions, political
decisions, etc. to be stable and predictable, and they assume that it does not intervene
in or cause problems for the functioning of an organization. Therefore, the closed-
system models do not depend on the external environment for explanations or
solutions to managerial issues; instead, they are enclosed and sealed off from the
outside world. These models rely primarily on internal organizational processes and
dynamics to account for organizational, group, and individual behaviors. The central
management objective addressed in these models is the efficient running of the
organization. Closed systems are easier to deal with theoretically than open systems,
and are preferred, despite their limitations.

Contingency or Situational Approach:


Contingency approach to management is an important modem approach. This
approach originated in around 1970. According to it, the managers should take
decisions not according to principles but according to the situations. It means that
there cannot be any single principle / formula / managerial activity which can be
suitable in all the situations. Its chief reason is the constantly changing nature of
environment. Here environment means the sum total of all the factors which
influence the organization.

These factors are both internal and external. The internal factors include
objectives, policies, organization structure, management information system, etc.
The external factors include customers, suppliers, competitors, government
policies, political set-up, legal system, etc. All these factors are subject to change
that is why the environment of an organization is called dynamic.

The system approach has failed to establish a relationship between the


organization and environment. The contingency approach has made an attempt to
remove this weakness. It is, therefore, the basic duty of the managers to analyse
the environment and they should take decision on the basis of their analysis. The
managers should always keep in mind that no single method can be suitable for
doing any work. Its suitability depends on the situations.

It is quite possible that a particular method of doing a thing may be futile and to
hope that these principles would be suitable or successful in one situation, but the
same may not be the case in some other situation. So far as the different
principles of management are concerned, they simply guide the mangers, and in
the present dynamic environment, it would be futile to hope that these principles
would be suitable or helpful in all the situations.

 INTEGRATIVE APPROACH
An integrative approach within systems theory emphasizes a holistic perspective,
combining knowledge and methodologies from various disciplines to tackle complex
issues. This approach encourages systems thinking, which allows individuals to see
patterns and interconnections among different components rather than relying solely
on linear cause-and-effect relationships. By acknowledging feedback loops and the
emergence of complex behaviors, this method helps to anticipate how changes in one
part of a system can impact the whole. Engaging multiple stakeholders ensures that
diverse perspectives are considered, fostering collaborative solutions that address
broader social, ecological, and economic dimensions.

Moreover, the integrative approach prioritizes sustainability and adaptive


management, recognizing the importance of long-term impacts and the need for
ongoing learning in an ever-changing environment. This method promotes innovative
problem-solving by leveraging creativity across diverse viewpoints, leading to unique
solutions that might not surface through traditional methods. By integrating cultural
awareness and the continual adaptation of strategies, organizations can navigate
complexities more effectively, ultimately enhancing their resilience and capacity for
change. Just like crafting the perfect taco, it’s about balancing all the right ingredients
for a delicious outcome!

REFERENCE
Lee G. Bolman, Terrence E. Deal Modern Approaches to Understanding and
Managing Organizations

By gtn slmn

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